Growing Trends Of IT Offshore Outsourcing To Watch In 2022Oct 21,2022
The outsourcing model has transformed the way many industries work, and there is no arguing with it. However, outsourcing is not static: it changes to adapt itself to the needs of businesses. Starting as a way to find more affordable solutions, outsourcing has now grown into a way for brands to access top-tier talent from all parts of the world to work on their project.
As more and more companies recognize the benefits of IT outsourcing, trends emerge that drive the way outsourcing companies and their customers work together to ensure the best outcomes for both. In this article, we take a look at X of those trends you need to watch for whether you are a business looking to hire an IT outsourcing company, or an IT solutions company already working in the field.
Hiring Niche Talent
According to a survey by Gartner, 64% of IT executives consider the shortage of tech talent the main barrier to adopting new technology. In fact, lack of talent was the most cited barrier for IT companies towards development cited in the same survey. The shortage of tech talents is so big that it led to around 40 million unfilled jobs in 2020.
This lack of niche talent, and because it takes time and financial resources to grow and upskill in-house teams, companies turn to offshore outsourcing. This way they instantly get access to niche talent in highly technical skills. Meanwhile, these offshore companies in turn try to find qualified professionals around the world to work on their clients’ projects.
Nearshore Outsourcing Instead of Offshore Outsourcing
Nearshore outsourcing is when businesses decide to hire outsourcing teams from neighboring countries instead of offshore outsourcing them to far-away countries. An example of this is, for example, when a company from Germany hires an outsource team from Belarus or Armenia instead of outsourcing their project to India or China. This is in part due to the smaller difference in time, as teams get to work together simultaneously, and in part to the fact that managing supply chains, or organizing travels is easier with countries that are geographically closer. This is further encouraged by the COVID-19 pandemic, which made traveling further distances considerably harder.
Remote Work and Business Flexibility
COVID-19 pandemic has made working from home the new norm. Many companies have recognized the benefits of giving their employees the flexibility of choosing the place they want to work from, and the employees have also benefited greatly from that flexibility. According to a survey by SuperStaff, 44% of employees currently work remotely.
These changes have resulted in many businesses becoming more flexible in how they work. Because of the changes and unplanned situations brought by the pandemic, many companies expect their outsourcing clients to be more understanding in case of unplanned changes in the pace of the project.
Demand of Better Data Security
Data security is another trend in our list that has received a significant amount of attention recently.
Especially in the case of offshoring, with an abundance of low-quality services and data breach stories lurking around, data privacy is a major concern for many businesses when outsourcing their IT needs. As there is more information about data breaches and other potential dangers, brands educate themselves of possibilities and try to avoid them. As a result of this, many companies turn to Managed Service Providers (MSP) to ensure enhanced data security for their distributed teams or demand improved cybersecurity solutions from their outsourcing partners.
Artificial Intelligence and Automation
The list wouldn’t have been complete without AI and Automation, two terms that have at this point become buzzwords in the IT industry. Companies use AI for many purposes, trying to automate repetitive tasks to make the work process more productive. Many companies now also turn to AI to ensure a better customer experience through trained chatbots. This increased usage of AI technologies to improve work processes, in general, motivates companies to look for offshore outsourcing partners offering AI solutions.
Increased Usage of Collaborative Tools
Collaborative tools are not a new thing in the IT industry, especially in the case of remote work or where there is a need to regularly report to the clients. Because of the rapid changes that happened after the emergence of the internet, and especially during the pandemic, companies increasingly switch to collaborative tools to ensure improved workflow and smooth operations. Implementing modern-day tools into their workflow, companies are at lesser risk of miscommunication and project delays, ensuring better management efforts both time- and cost-wise. Some of the more popular tools that have made their way to the IT world are Slack for Communication, Trello for Project Management, and Zoom for team calls, but the number and specialization of these tools are growing constantly.
Building dedicated teams is not an easy feat, but with the right tools and approaches, it is possible through a partnership with the right company. Keep in mind these emerging trends as you navigate through the world of IT outsourcing and try to manage your business effectively. Use them to develop a business plan that will ensure your success irrespective of any challenges that may arise in the process.
And if you are interested in exploring the possibility of outsourcing your IT efforts and are looking for a company with multiple years of experience, and a large number of projects under its belt, feel free to reach out to us for possible cooperation.